Bi, H., Leeper, E.M. and Leith, C. (2013) Uncertain fiscal consolidations. Economic Journal, 123(566), F31-F63. (doi: 10.1111/ecoj.12011)
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Abstract
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition—either tax- or spending-based—are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt, and expectations over the likelihood and composition of fiscal consolidations all matter in determining the extent to which a given consolidation is expansionary or successful in stabilising government debt. We argue that the conditions that could render fiscal consolidation efforts expansionary are unlikely to apply in the current economic environment.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Leith, Professor Campbell |
Authors: | Bi, H., Leeper, E.M., and Leith, C. |
College/School: | College of Social Sciences > Adam Smith Business School > Economics |
Journal Name: | Economic Journal |
Publisher: | Wiley |
ISSN: | 0013-0133 |
Copyright Holders: | Copyright © 2013 The Authors |
First Published: | First published in Economic Journal 123(566):F31-F63 |
Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher |
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